**Top Economist Torsten Slok Warns About Persistent Inflation**
Torsten Slok, chief economist at Apollo Global Management, warned that inflation in the U.S. could remain high for much longer than markets and policymakers expect. Despite recent signs of easing, Slok emphasized that persistent pressures from wages, housing, and ongoing fiscal stimulus are likely to keep inflation numbers elevated. He suggests that hopes for quick interest rate cuts may be optimistic, as central banks could feel compelled to keep monetary policy tight to fight inflation.
Slok believes that investors and businesses should prepare for a scenario where inflation remains stuck above the Federal Reserve’s 2% target. The labor market’s continued strength and strong consumer demand both contribute to upward pressure on prices, making it difficult for policymakers to declare victory over inflation. Slok cautions that relying on historical patterns of rapid disinflation may not be appropriate given the current economic landscape.
For real estate investors in Arizona, persistent inflation and the resulting higher interest rates could have significant impacts. Elevated borrowing costs may affect both commercial and residential property valuations and could slow the pace of new investments. However, Arizona’s growing population and robust housing demand might help to offset some of these pressures, making careful market analysis indispensable for investors navigating this uncertain environment.
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